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Economics
MEDIUM
ENGLISH
Economics
If the price is less than the average costs but higher than the average variable costs ?
A
The firm is making a loss and will shutdown in the short term
Option A
B
The firm is making a profile
Option B
The firm is making a loss but will continue to produce in the short term
Correct answer
D
The firm is making a loss and is making a negative contribution to fixed costs
Option D
Correct answer: C
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